thunder0932

Boy am I Lucky: Midland Lawsuit in GA #2

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So, this was interesting. I was just served a separate lawsuit from the same process server today, which was filed back in October 2017. The plaintiff? Midland Funding LLC CitiBank (Best Buy CC) - Green & Cooper. Midland filed a lawsuit this month and that can be found here: 

 

 

Questionnaire 

1. Who is the named plaintiff in the suit?

MIDLAND (Blood-Sucking) FUNDING

2. What is the name of the law firm handling the suit?

Green and Cooper LLP

3. How much are you being sued for? 

~$1519

4. Who is the original creditor?

CitiBank (Best Buy Credit Card)

5. How do you know you are being sued? 

Served

6. How were you served?

Someone dropped it off in person

7. Was the service legal as required by your state? 

Not sure, more on that below. 

8. What was your correspondence (if any) with the people suing you before you think you were being sued?

No correspondence. More on that below.

9. What state and county do you live in?

Georgia Cobb County

10. When is the last time you paid on this account? 

02/2016

11. When did you open the account?

2015

12. What is the SOL on the debt?

6 years

13. What is the status of your case? 

"NON-SERVICE" 1-15-18

14. Have you disputed the debt with the credit bureaus. 

No

15. Did you request debt validation before the suit was filed? 

No

16. How long do you have to respond to the suit?

30 days

17. What evidence did they send with the summons? 

Exhibit A: Statement 11/18/2016

Exhibit B: Statement 12/18/2015

Exhibit C: Bill of Sale from OC, Affidavit of Sale from OC, Certificate of Conformity 

Exhibit D: Electronic Field data 

Exhibit E: Affadavit from Midland's Legal Specialist

A Few Things Here:

  • I'm completely blind-sighted by this. I have never received any notice as to the purchase of this debt by Midland.
  • The defendant's address on this lawsuit is listed as one I've never resided at (I don't know where they got it from) 
  • The electronic records contained with the supposed bill of sale and one of the CC statements uses an unknown address listed in Alpharetta GA - The last time I resided in Alpharetta was well over 10 years ago. Hell, I would of been too young at the time to open a line of credit. 
  • I was 20 years old when the card was opened....it's a Best Buy card applied for/opened in-store. I just figured out today proof of income is required to open a line of credit with the OC for those under 21. I sure as **** didn't show a BB employee my tax forms/pay stubs. Is this a violation of the credit CARD Act? If so, how/would it apply today?

So Midland/G&C had the proper address for the Synchrony bank card....but both Midland/G&C and CitiBank completely F'ed up my address. Which is ridiculous considering every other account I had opened does not have this problem - hell, even Midland/G&C had the proper address apparently in-order to serve me with the Synchrony lawsuit. Further, according to the CC statements provided...I submitted  a payment on 2-2016 - I was living in Atlanta at the time...not Alpharetta.  So, I assume my friendly process server recognized my name from serving me with the Synchrony papers and decided to pay me another visit today. Here's the paperwork (I've added notations in red):

complaint_clean.pdf

In addition to that, they completely fail to show how the account even got to $1,519.69 they are demanding. In Exhibit B they provide a CC statement with a closing date of 11/18/15 with my ending balance at $514.88 - no other records are provided to represent this payment of $400 on 2/2016 in Exhibit D. 

****

To me, this is a steaming pile of horse-****. Should I begin seeking legal council as to the potential violations (if any) that might have occurred? 

Regardless what happens; I'm kind of glad both of these are happening at the same time....I'd rather eat **** for a few months rather than draw it out for a year+. 

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So these are the two things I'm looking at...again, this was applied for and approved in a BB store at the spur of the moment - I never sent them anything as proof of income. At most they might have asked me an estimate as to my income (memory is hazy). Hell, I didn't even turn 21 until right after the last utilization. 

Quote

CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009

‘‘(8) APPLICATIONS FROM UNDERAGE CONSUMERS.— ‘

‘(A) PROHIBITION ON ISSUANCE.—No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer who has not attained the age of 21, unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph

(B). ‘‘(B) APPLICATION REQUIREMENTS.—An application to open a credit card account by a consumer who has not attained the age of 21 as of the date of submission of the application shall require—

          - ‘‘(i) the signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account, indicating joint liability for debts incurred by the consumer in connection with the account before the consumer has attained the age of 21; or

          - ‘‘(ii) submission by the consumer of financial information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account.

‘‘(C) SAFE HARBOR.—The Board shall promulgate regulations providing standards that, if met, would satisfy the requirements of subparagraph (B)(ii).’’.

https://www.ftc.gov/sites/default/files/documents/statutes/credit-card-accountability-responsibility-and-disclosure-act-2009-credit-card-act/credit-card-pub-l-111-24_0.pdf

Quote

12 CFR Part 1026 (Regulation Z) Subpart G §1026.51(a)(2)(ii)(B)

1. APPLICATIONS FROM YOUNG CONSUMERS.

A card issuer may not open a credit card account under an open-end (not home-secured) consumer credit plan for a consumer less than 21 years old, unless the consumer has submitted a written application and the card issuer has:

i. Financial information indicating the consumer has an independent ability to make the required minimum periodic payments on the proposed extension of credit in connection with the account; or

ii. A. A signed agreement of a cosigner, guarantor, or joint applicant who is at least 21 years old to be either secondarily liable for any debt on the account incurred by the consumer before the consumer has attained the age of 21 or jointly liable with the consumer for any debt on the account; and

   B. Financial information indicating such cosigner, guarantor, or joint applicant has the ability to make the required minimum periodic payments on such debts, consistent with paragraph (a) of this section.

https://www.consumerfinance.gov/eregulations/1026-51/2013-30108_20150718#1026-51-b

 

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6 hours ago, thunder0932 said:

I'm completely blind-sighted by this. I have never received any notice as to the purchase of this debt by Midland.

Georgia is not one of the states that requires a creditor to notify you if they sell your debt/account.

6 hours ago, thunder0932 said:

I just figured out today proof of income is required to open a line of credit with the OC for those under 21. I sure as **** didn't show a BB employee my tax forms/pay stubs. Is this a violation of the credit CARD Act?

The BB employee would not have to ask for any proof of income.  That would have to come from the creditor.  It MIGHT be a violation of the card act but there is the risk they are going to claim you falsified the application to get the credit.  You need a lawyer to sort that out.

7 hours ago, thunder0932 said:

In addition to that, they completely fail to show how the account even got to $1,519.69 they are demanding. In Exhibit B they provide a CC statement with a closing date of 11/18/15 with my ending balance at $514.88 - no other records are provided to represent this payment of $400 on 2/2016 in Exhibit D. 

Georgia does not require they attach ALL their evidence to the complaint or do an accounting.  6 months of late fees, high interest and over the limit fees add up REALLY quickly.

It is possible due to the address issues that they have mixed up your file with another consumer.  I would get a free consult with a good consumer attorney before proceeding any further. 

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4 hours ago, Clydesmom said:

The BB employee would not have to ask for any proof of income.  That would have to come from the creditor.  It MIGHT be a violation of the card act but there is the risk they are going to claim you falsified the application to get the credit.  You need a lawyer to sort that out.

Yeah, to be clear...the argument isn't whether or not I falsified the application (I didn't); through my interpretation of the CARD act, it's still a violation for the OC to approve a card without requesting for a pay-stub etc.  Looked at my BB order history; and guess what? I had an in-store order on 3-13-15 (called BB and got the receipt...paid using the card). So, if my interpretation is correct, they very obviously opened up a line of credit without obtaining proof of income.

To be honest here, there's other tried and true methods out here to get this to go away. I just thought it was an interesting observation to share and I'll look around for a free consultation.

Thanks a bunch for the input!

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The status of the case is "non service" from Jan 2017?? Or is it 2018?

I am trying to remember and find if Magistrate has any rule on the amount of time allowed to perform service, but I'm not finding anything.  They probably allow a case to sit dormant for years in some instances, I would guess.  It is probably going to be a case of MTC rinse and repeat from your other thread.  Except this time you need to watch out for that Citi clause wording about small claims.  If this were me, I would continue with the MTC as normal, but if they bring up that small claims language to the judge, I would have my backup plan to either be file a counter claim or prepare for the De Novo appeal where you would be free to use arbitration once out of "small claims".

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3 minutes ago, fisthardcheese said:

The status of the case is "non service" from Jan 2017?? Or is it 2018?

I am trying to remember and find if Magistrate has any rule on the amount of time allowed to perform service, but I'm not finding anything.  They probably allow a case to sit dormant for years in some instances, I would guess.  It is probably going to be a case of MTC rinse and repeat from your other thread.  Except this time you need to watch out for that Citi clause wording about small claims.  If this were me, I would continue with the MTC as normal, but if they bring up that small claims language to the judge, I would have my backup plan to either be file a counter claim or prepare for the De Novo appeal where you would be free to use arbitration once out of "small claims".

Whoops - it was 2018. Sorry for that mess up! I've corrected it.

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Hey @thunder0932 - what ended up happening with your case?  I am also dealing with Greene and Cooper on behalf of Midland Funding for a CitiBank Best Buy card in Fulton county.  I have mandatory mediation today, so any insight you can provide would be greatly appreciated. Thanks!

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